Study: Student loans don’t hinder mortgages

Young buyers are not being held back from obtaining a mortgage due to their student loan debt, according to a new report released from TransUnion.

Consumers between the ages of 18 and 29 with a student loan in repayment are generally able to qualify for new loans and, not only that, tend to perform as well as or better on those new loans than similarly-aged consumers without student loans, the report says. For its analysis, TransUnion researchers studied borrowers with student loans who entered repayment from three different time frames, the fourth quarter of 2005, fourth quarter of 2009 and fourth quarter of 2012.

The report showed that in only three to six years, student loan consumers in their 20s are able to pass similarly-aged consumers without a student loan in overall loan participation rates on mortgages, auto loans and credit cards.

According to TransUnion financial services, going to school impacts young consumers access to credit. While in school, students may be less likely to have a job and generate the income necessary for loan approval; however, most catch up once they leave school — and their ability to catch up has not changed over the past decade. The study demonstrates that consumers in their 20s with student loans in repayment — that is, once they finish school — are in fact able to access credit at levels similar to or better than their peers who do not have student loans. I have had this experience myself with young consumers.

The study found that the changing economy between 2005 and 2012 did impact young consumers access with credit, with the percentage of consumers aged 18-29 with mortgages, credit card, or auto loans dropping significantly. But the study showed that the drop impacted consumers with student loans and those without in similar ways.

This is an especially important finding because it shows the dramatic rise in student loan balances has not materially impacted young consumers in gaining access to mortgages, auto loans or credit cards, or in their ability to successfully manage their new credit obligations.

The Stark County Association of Realtors serves as the voice for real estate in Stark and Carroll counties. For more information, or for a complete listing of Realtor professionals and affiliate members, visit

Five mistakes to avoid when buying commercial property

“Buying commercial property is a long-term commitment and a major investment for any business, therefore such a decision needs to align with the business’s growth objectives,” says Axel Cramer, Head of FNB Namibia’s Commercial Property Finance.

“Being in a position to buy commercial property is an exciting phase for a business as this creates new possibilities. In some cases, commercial property buyers make impulsive decisions based on emotions rather than sound business objectives. During the decision-making process, it is important to remain focused on business needs and not overlook the finer details which could have long-term limitations on business growth,” he advised.

Cramer states that paying attention to some of the certain areas could help commercial property buyers avoid costly mistakes. The first is commercial use, title deeds and town planning restrictions. Here he advised to ensure that the property is zoned for commercial use and one should investigate any potential town-planning restrictions for the chosen area. This, he said, will give the buyer a good sense of whether your business could face growth restrictions in future.

Second on Cramer’s list is that the size of the property must accommodate business growth. “Depending on the type of business, you need to consider the business’s growth potential and whether the targeted location could accommodate such growth.  It is not advisable to buy property to only sell a few years later because you could potentially lose money and sourcing new property comes with additional costs such as agent’s commission and transfer costs.”

Thirdly, Cramer touched on location and accessibility. He remarked that a location might be better suited to the business but not necessarily convenient or accessible to employees or clients. “This could be detrimental because you could end up investing more resources in transport or losing talent due to the inconvenience of the business location. Similarly, you want to ensure easy accessibility for your clientele since this has a direct impact on the future of your business. There needs to be a fair balance.”

Fourth is that the buyer should not overpay. The objective of every property seller is to make substantial profit from the sale of their property. This is why commercial property buyers need to understand and research the potential value of their targeted property and negotiate a reasonable price. Banks also play an essential role in this regard because they use independent property evaluators to ensure that the buyer has a good idea of the property’s value.
Lastly, Cramer advises understanding upfront and ongoing costs. Similar to buying residential property, there are upfront costs such as transfer and registration costs that need to be settled by the buyer during a commercial property transaction.

Included in operational costs are insurance, security, rates and taxes, water, electricity, cleaning and provision for maintenance which needs to be taken into consideration.

“Acquiring commercial property is a significant step in the life cycle of any business and it is important to ensure that all factors are taken into consideration. Business owners should enlist all the necessary help to ensure that they make the right decision, especially in view of the long-term nature of property investments,” advised Cramer.

Student Loans and Your Credit

Many people consider student loans to be a necessary evil. Young people want to attend college in order to get the kinds of jobs that will allow them to get ahead in life, but tuition rates are too high for most students (and parents) to pay out of pocket.

How difficult is it to qualify for these loans, and how can borrowing money for education expenses affect your credit?

Getting Approved for College Financing

While it is a little easier to qualify for student loans than it is for other types of loans, you will still be expected to have reasonably good credit in order to be approved. And there are a few more requirements to consider.

  • You will need to have at least 2 years worth of credit history.This is one of the main reasons why parents are often the ones to actually take out the student loans, as most people who are just graduating from high school probably arent going to have a substantial history of borrowing.
  • It will be advantageous to have had at least 2 years of full time employment history with the same employer or in the same industry. This will prove to your lender that your income is stable and dependable, and that there is a good chance that you will be able to pay back the loan.
  • Ideally, you should have been at the same residence for 2 years or more. Again, its all about stability. This shows a potential lender that you are settled and capable of taking on long term responsibilities.

The Potential Impact on Your Credit Health

Educational loans are reported on the borrowers credit history as a type of installment loan, and they can either positively or adversely affect your credit.

  • The Positive: If you dont get behind on your payments, a student loan can boost your credit score significantly over the life of your repayment plan, paving the way for future purchases.
  • The Negative: If you fail to make the payments on your student loan, your credit report will reflect this negative borrowing behavior, and your credit will become damaged.
  • Bankruptcy-Proof: One very important thing to remember is, unlike credit card debt (or other types of loans), most educational loan debt cannot be reduced or eliminated in a bankruptcy filing.

Car Buying 101

If you need some assistance in purchasing that vehicle that will get you to college, Auto Credit Express can help you with every step of the buying process. And whether you need to build credit or rebuild compromised credit, an affordable auto loan will give you the opportunity that you need.

Just fill out our fast and secure application to get started today.

This CEO is taking on the biggest banks on Wall Street — and winning

Renaud LaPlanche went from trying to help people get a better rate on credit card debt to taking on the entire banking industry.

LaPlanche is the CEO of Lending Club.

Lending Club got its footing in the financial services industry by being one of the first startups to streamline the financing process online.

More recently, LaPlanches company has gone from being a peer-to-peer lender to a multi-faceted financing shop.

In the process Lending Club has added the financing capacity of 200 community banks. If all the banks Lending Club has partnered with were actually its own, LaPlanche says his company would be the fourth-biggest bank in America.

Now, Lending Club is acting more like a bank. LaPlanche is taking Lending Club into new areas like lending to small businesses, pitting his company against another financial technology company expected to debut soon on public markets: PayPal.

Its hard for a bank to make $US50,000 small business loan, LaPlanche said in New York this week.

Lending Club is hoping that between its technology and regional banks desire to diversify their borrower base through its app, that it will be able to claim a bigger share of a debt market that has been slow to recover in the wake of the financial crisis.

But LaPlanche isnt just going for small business loans that big banks have neglected in the last five years.

Next, the company will get into new lines of business including auto loans and mortgage servicing.

LaPlanche points out that one-third of car sales are between consumers, and not sold by dealerships. Attaching financing options not to the established automakers, but to the numerous websites that facilitate second-hand car sales opens Lending Clubs doors to millions of potential borrowers.

Getting into mortgage servicing will only build that base even further. There, LaPlanche thinks Lending Club can take a process that drags on for six to eight weeks and reduce it to two.

The main improvement is in the user experience, he said, referring to Lending Clubs ability to expedite the financing process.

LaPlanche sees the banking industry as one thats still ripe for disruption. He came up for the idea for Lending Club in 2006, when he received concurrent statements in the mail from his bank. The first statement was for his credit card, and charged whopping 18% APR. The second, his savings. That was returning him a mere 0.5%.

In the years that passed, LaPlanche has seen his startup blossom into a company that debuted on public markets. Soon, his company will have worked on $US10 billion in consumer loans. The San Francisco-based entrepreneur admits he didnt have the aim to overturn the entire banking sector in 2006 when he decided to form his company. Instead, he just wanted to cut into the massive spread big banks enjoy through their savings and loans businesses.

He knows that part of what has helped Lending Club could not have been foreseen.

We were helped by the financial crisis a bit, he acknowledges.

The financial crisis did not only provide data models to help Lending Club make better loans, it ushered in banking regulations that provide him an advantage that is not as easily accessed by companies like Goldman Sachs and consumer banks like Wells Fargo.

NOW WATCH: Take a tour of the $US367 million jet that will soon be called Air Force One

Follow Business Insider Australia on Facebook, Twitter, and LinkedIn

Amlak eyes strategic partnership with Emaar

Property finance firm, Amlak, is in talks with Emaar over a strategic partnership.

Amlak Finance to increase mortgage financing
| Emaar dismisses talk of Amlak stake increase
| Amlak and Dubai World Central ink deal

Dubai-based Islamic property finance provider Amlak Finance said that it is currently in talks with Emaar with regards a strategic partnership.

In an interview with Arabic Al-Khaleej newspaper posted on the Dubai Financial Market, Adnan Al Awadhi, CEO of Amlak Finance, said that it has already begun discussions with Emaar to develop its properties, spread across key locations.

Al Awadhi said Amlak and Emaar, along with Dubai Land Department, are working to find ways to restart a number of stalled projects, and that an agreement regarding one project is expected to close soon.

Emaar owns 45% of Amlak, its largest shareholder.

Fitch Affirms HYDRA V Funding Corp’s Bonds at ‘AA+sf’

(The following statement was released by the rating agency)
TOKYO, June 26 (Fitch) Fitch Ratings has affirmed the ratings on
HYDRA V Funding
Corporations series 1 bonds as follows:
JPY3.11bn* Class S1 bonds affirmed at AA+sf; Outlook Stable
JPY1.34bn* Class S2 bonds affirmed at AA+sf; Outlook Stable
*as of 25 June 2015
The transaction is a securitisation of residential mortgage
loans originated by
multiple originators in Japan.
The affirmations reflect Fitchs view that the available credit
enhancement (CE)
is sufficient to support the current ratings.
Of the four underlying beneficial interests (BIs) backed by
their respective
mortgage loan pools, three are senior BIs supported by
subordination. The CE
level of each senior BI has continued to increase and all are
considered by
Fitch to be well-protected against potential future performance
Also, as per transaction documentation, excess spread in the
Hydra V Trust is
available to redeem bonds through the BIs issued from the trust,
additional support to the bonds.
The ratings of this transaction are constrained by exposure to
the account bank
in the Hydra V trust, which does not satisfy the agencys
counterparty criteria
to support AAAsf ratings.
An unexpected material increase in delinquencies, defaults and
loss severities
from defaulted loans in the underlying pools may lead to
negative rating
actions. However, the possibility of downgrade is considered
remote as the bonds
would be able to maintain AA+ ratings even if Fitchs default
assumptions were
5.0 times higher than currently assumed in the agencys AA+sf
stress scenario.
No third party due diligence was provided or reviewed in
relation to this rating
Fitch has checked the consistency and plausibility of the
information it has
received about the performance of the underlying pools and the
There were no findings that were material to this analysis.
Fitch has not
reviewed the results of any third party assessment of the
underlying pools
information or conducted a review of loan origination files as
part of its
ongoing monitoring.
The originators of the remaining underlying residential mortgage
loan pools are
The Tottori Bank, Ltd., ARUHI Corporation (formerly SBI Mortgage
Co., Ltd.),
Toyota Finance Corporation and Shinsei Property Finance Co.,
Ltd. The senior BIs
backed by the residential mortgage pools originated by The
Fukushima Bank, Ltd.
and Bank of The Ryukyus, Ltd. have been fully redeemed.
Lead Surveillance Analyst
Naoki Saito
+81 3 3288 2631
Fitch Ratings Japan Limited
Kojimachi Crystal City East Wing 3rd Floor
4-8 Kojimachi, Chiyoda-ku
Tokyo 102-0083
Committee Chairperson
Atsushi Kuroda
Senior Director
+81 3 3288 2692
Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935,
Additional information is available at
Sources of Information:
The sources of information used to assess the rating were
Sumitomo Mitsui Trust
Bank, Limited as trustee and Shinsei Trust Banking Co., Ltd.
as service
Applicable Criteria
APAC Residential Mortgage Criteria (pub. 23 Jun 2015)
Counterparty Criteria for Structured Finance and Covered Bonds
(pub. 14 May
Global Structured Finance Rating Criteria (pub. 31 Mar 2015)
Additional Disclosures

cfm?pr_id=987029gt;Dodd-Frank Rating Information Disclosure
Solicitation Status

=2detail=31gt;Endorsement Policy

Nedbank Property Finance lends R500m towards hotel development in Cape …

Nedbank Property Finance recently provided R500 million finance for the development of a 303-room three star Stay Easy Hotel and a 202-room four star Sun Square Hotel, both of which will be operated by the Tsogo Sun Holdings. Group. 

Some South Carolina College Presidents Call For Confederate Flag’s Removal …

Several college presidents in South Carolina are calling for the removal of the Confederate battle flag on display outside the state capitol following last weeks killing of nine people at the historic black Emanuel AME. Church in Charleston.

South Carolina Gov. Nikki Haley and the states US senators, all Republican, have called for the Confederate flags removal from the statehouse grounds, and the Post and Courier newspaper in Charleston is tracking how many lawmakers are on record in favor of removing the flag. As of Tuesday evening, 92 legislators who had responded were in favor of removing the flag, while about half had yet to respond, were undecided, refused to answer or were not in favor of removing the flag.

In January 2000, 46,000 people demonstrated in favor of bringing down the flag from the state capitol, where it was being flown above the building. In response, the legislature passed the Heritage Act, which requires a two-thirds vote from the state legislature to change the name of streets, parks and other public areas named for historical figures, or to move the flag, which was placed on a staff outside the statehouse. This law has prevented colleges in South Carolina from changing the names for buildings honoring white supremacists.

On Monday, University of South Carolina President Harris Pastides went on record calling for the flags removal, stating that its the right thing to do and the right time to do it.

Clemson University President Jim Clements and Bon Jones University President Steve Pettit both added their support Monday on Twitter.

Dr. David Swinton, president of Benedict College, said he joined the calls to end the display of the flag above the state Capitol in 2000, and continues to hold that position.

Whatever noble ideals and heritage were once symbolized by the Confederate flag has long been lost to hatred and racism, Swinton said in a statement to HuffPost on Tuesday.

The Huffington Post asked several other college presidents in South Carolina to weigh in on whether the Confederate flag should be removed from the state capitol. Their responses are below:

Furman University President Elizabeth Davis

“I applaud and support the state’s leadership in the call to remove the Confederate battle flag from the Statehouse grounds, Davis said in a statement. South Carolina should be a place where all are able to fully participate in the social, economic, and civic life of our state — free from the fear and the symbols of racial segregation that diminish the life of all of our citizens. It is my fervent hope that the General Assembly will act morally and swiftly to pass legislation to take down the flag. This is an historic time in the life of our state. May those in charge have the courage to take action.

Wofford College President Nayef Samhat

Samhat issued a statement to HuffPost Tuesday afternoon adding his support to bringing down the flag:

I support South Carolina Gov. Nikki Haley and others in our state’s leadership who have called for the removal of the Confederate battle flag from the State House grounds. It is incumbent upon us — especially those of us who are educators — to affect change that embraces the wonderful diversity that is South Carolina.

I urge the General Assembly to move quickly to pass the necessary legislation to remove the flag from this public area, which belongs to all of the people of South Carolina. Our state should be a symbol of diversity, creativity, transformation, and a unique blend of tradition and forward thinking — where everyone has the opportunity to participate freely and without prejudice.

Clemson University President Jim Clements

Clements added in an email to the student body, I write to let you know that I issued a brief statement earlier today, announcing that I join Governor Haley and other South Carolina leaders in calling for the removal of the Confederate battle flag from the State House grounds. Please continue to keep the families and friends of the victims in the Charleston shootings in your thoughts and prayers. A campus vigil is being organized for Wednesday to honor those who lost their lives.

Bob Jones University President Steve Pettit

College of Charleston President Glenn McConnell

McConnell, a former Republican leader of the state legislature and lieutenant governor the South Carolina, used to run a Confederate memorabilia shop, and was an ardent supporter of flying the Southern Cross on statehouse grounds. College of Charleston officials told HuffPost that McConnell doesnt expect to comment until after the funerals for the slain churchgoers.

South Carolina State University President Dr. W. Franklin Evans

The historically black university provided a brief statement on Tuesday, saying, The president will not make any public comment on the matter at this time. Instead, he remains focused on the priority work to be done here at the university.

Coastal Carolina University President David DeCenzo

I completely support Governor Haley’s call to remove the Confederate flag from the grounds of our statehouse, DeCenzo said in a statement. This action demonstrates a vital step for unity among all people of South Carolina — a step we must take to define and determine our future, and to begin healing the wounds inflicted by this tragedy.

Winthrop University Acting President Debra Boyd

The Confederate flag is both an historical artifact and a visceral modern symbol of racism and oppression. The time is right to put the flag in a museum where the past is neither forgotten nor exalted but used appropriately to educate, Boyd said in a statement. By moving the flag from the State House grounds to a museum, we demonstrate our resolve to move forward, together, as a people and a state.”

Benedict College President David Swinton

Swinton provided an extended statement to HuffPost on Tuesday:

I and the Benedict College family are deeply saddened by the tragic events in Charleston. We at Benedict College mourn the loss of those precious souls including our own fallen Tiger, Mrs. Myra Thompson. Mrs. Thompson earned a Bachelor of Science degree in English from Benedict College in 1979. We pray for her husband, Rev. Anthony Thompson, who is also a Benedict graduate and all the families who lost loved ones.

This unfortunate incident was the consequence of the continued racial division and thoughtless racism practiced by some in our State. The continued belief by some thoughtless minority of our citizens in the rights of the white race to oppress non-whites is at the core of such senseless and tragic acts. And unfortunately those extremists who hold such views have adopted and wrapped themselves in the Confederate flag. Whatever noble ideals and heritage were once symbolized by the Confederate flag has long been lost to hatred and racism.

I am very appreciative and supportive of the effort to remove the flag from the state house grounds. This was my position in 2000 when we joined in the successful effort to remove the Confederate flag from the State House Chambers and Dome. We advocated for the removal to a museum, perhaps the Confederate relic room at the State Museum. For many South Carolinians, the flag is a divisive symbol associated with secession, oppression, racism and discrimination.

The racial history of our State, which has been home for my family traceable back to the Civil War, makes it quite clear why many South Carolinians feel this way. While some see the Confederacy as a noble cause others see this rebellion as an attempt to destroy the Union and to perpetuate an unholy and unjust system of human bondage and racism. Those whose ancestors were enslaved and those who were sympathizers with the slaves cannot be neutral about the symbol of this oppressive system. But equally as objectionable is the fact that the symbol has been usurped in the post-Civil War period by terrorists and racists. Our State needs to put this division behind us and go forward as a unified people recognizing the dignity and equality of all South Carolinians.

I commend Governor Nikki Haley and all of the courageous political, religious, educational, business and other leaders in our State who have stepped forward to remove this symbol from our State House grounds. We offer our full support for this effort.

The Citadel, The Military College of South Carolina, President Lt. Gen. John W. Rosa

Rosa provided HuffPost with a statement Tuesday night:

I stand with other state leaders who have called for the removal of the Confederate Flag from Statehouse grounds. At The Citadel we pride ourselves on our core values of honor, duty and respect. Removing the flag is an example of the principled leadership we seek to instill in our cadets and students.

Nedbank CEO to challenge subpoena

Nedbank’s CEO Mike Brown plans to mount a legal challenge to set aside a subpoena issued on May 27 calling on him to appear before a Section 417 inquiry in terms of the Companies Act.

He’s to answer questions relating to his involvement in the liquidation of Waterkloofspruit Projects in 2001. Building contractors Dennis Da Silva and Ralph Rojahn, have also been subpoenaed to appear before the inquiry.

Pretoria businessman Edward de la Pierre, trustee of the CMT Trust and director of the company Hillcrest Village, now in liquidation, claims that employees of BOE Bank (acquired by Nedcor in 2002), conspired with the Master of the Pretoria High Court, the joint liquidators, two building contractors and several other parties to defraud CMT and Hillcrest of up to R200 million.

The claim relates to the development of 211 stands in Pretoria’s Waterkloofspruit Boulevard development. BOE Bank succeeded in its application to liquidate Waterkloofspruit Projects in 2001. On March 20 in the same year, it acquired 137 stands for R100 000, or R730 a stand, in what de la Pierre claims was a sham auction intended to defraud the CMT Trust and Hillcrest Village to the benefit of the bank, the liquidators, the auction company and the contractors. One year prior to the liquidation, the stands were selling for R220 000 each.

Hillcrest Village, which provided surety for Waterkloofspruit Projects, is now being represented by liquidators Dewald Breytenbach and Simon Mahlangu who applied for and obtained the court order to hold the inquiry that recommenced on Monday this week, after being postponed in 2010.  

De la Pierre is the former CEO of JSE-listed Gilboa Properties, which later changed its name to Absolute Properties and now trades on the JSE as Bauba Platinum.

The dispute, which has been dragging on since 2006, has been repeatedly delayed on technical issues. Four different judges found evidence of fraud in the Waterkloofspruit Projects liquidation, though the main case and its merits are still to be heard by the court.

De la Pierre says the Section 417 inquiry is crucial to understanding the role of Brown, BOE/Nedcor and the other players he accuses of involvement in the demise of the Waterkloofspruit development and Hillcrest.

De la Pierre has also asked for discovery of certain documents which would allow him to complete his pleadings, but says the bank has yet to comply. These documents would either implicate or exonerate the bank in the alleged fraud, he says.

Nedbank responds

In a statement, Nedbank says it suffered a loss of R7 million when Waterkloofspruit Projects defaulted on its loan. “There have been various legal proceedings related to the liquidation of Waterkloofspruit Projects, culminating with a Supreme Court decision in July 2009 that the liquidation of WKP should not be reopened. 

“The Hillcrest matter has been dormant for a few years and has now surfaced again with the current subpoena. Mike was subpoenaed in his capacity as the head of BOE Property Finance at that time and has not been accused of any wrongdoing.

“At the enquiry the commissioner was advised that Nedbank will proceed with an application to set aside both the enquiry and the subpoena and on this basis Nedbank was excused from the enquiry. We have been given an opportunity until July 17 2015 to launch the application and we are proceeding accordingly.

“In line with the confidential nature of the enquiry, neither Nedbank nor Mike has any further comment about the matter but deny the allegations of wrongdoing by BOE/Nedbank,” according to the bank.

The inquiry continues

“We were informed last week by Nedbank’s attorneys Cliffe Dekker, also acting for Mike Brown, that they intend to bring an application to court to set aside the subpoena issued on him personally. They also informed us that they intend to use the same application to set aside the inquiry in toto. We will in the meantime however proceed with the inquiry to obtain the testimonies of other witnesses, including the forensic examiner who looked into the matter in 2013,” says de la Pierre.

“Should Nedbank and Mike Brown bring an application to challenge the subpoena and the inquiry as their attorneys have indicated, we will oppose the application. We find it strange that Mr. Mike Brown would go to these lengths to dodge the inquiry .It is clearly another delaying tactic”

A 2013 forensic report by Crash Data details what it calls are the “mismanagement, collusion and frauds” involved in the project. BOE Bank, which was in charge of the disbursement of the funds, over-paid the contractors. Building work was left incomplete, yet contractors were paid in full, according to the report.

“BOE’s subsequent efforts to hide the mismanagement and the actions of their unqualified staff not only caused Waterkloofspruit Projects and both the plaintiffs to suffer damages, but also led to the ultimate demise of Gilboa Properties, the best (performing) venture capital company on the JSE Securities Exchange in 2011,” says the report.

“All the Gilboa shareholders therefore suffered incalculable damages that could, if South African law catered for punitive damages (as in the USA and elsewhere), would run into billions of rands.

“If the mismanagement and the incorrect payments to BOE to the contractors did not occur in the fashion that it did, the full bond of R14.2 million and interest thereon would have been easily repaid in the allotted time.”

The forensic report also details how BOE ended up, through a general power of attorney, being able to act for both the bank and the property development company. “This dual situation allowed them to plan and execute the frauds and collusion.”

De la Pierre maintains that the bank saw an opportunity to enrich itself at the expense of Gilboa and CMT Trust by liquidating the development company. The 38-page forensic report details the extent to which all of the alleged co-conspirators benefitted from the demise of Waterkloofspruit Projects.

Credit Karma lands $3 billion valuation in trying to reinvent loans

In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon warned, “Silicon Valley is coming.” Hundreds of startups with “a lot of brains and money” are working on creating alternatives to traditional banks, he said.

Dimon is right. The Internet continues to erode traditional ways consumers use banking services, and today, one of the fast-growing upstarts, Credit Karma, has raised a massive war chest of $175 million in new funding, Fortune has learned.

Founded in 2008, the company is trying to reinvent how people monitor their credit and apply for loans. The new investment values it at over $3 billion, which is three times its previous valuation in 2014.

The company joins the growing number of unicorns — Silicon Valley lingo for startups with valuations in the billions of dollars — that are raising large growth rounds. San Francisco HR software company Zenefits just raised $500 million at a $4 billion valuation. And workplace collaboration platform Slack raised $160 million at a $2.8 billion valuation two months ago.

Credit Karma originally launched as a free online service for people to monitor their credit, aiming squarely at the incumbent Experians and TransUnions of the world. But the company has since broadened its ambitions to become a place for not only storing and monitor personal credit data, but also to apply for loans that fit a customers financial needs. On the website, users can access their credit information while being pitched credit cards, personal loans and more recently, auto loans, that match their profile.

Credit Karma works with most of the major US banks, as well as alternative lenders like Lending Club. The company does not work with more controversial forms of lending including payday loans, which saddle borrowers with high interest rates.

With over 40 million members, Credit Karma tries to manage all of the debt in its customers financial life.

According to the Federal Reserve, consumer debt, including mortgages, loans and credit card bills, hit a high of $3.2 trillion in 2013.

“We want to create the platform for your online financial identity,” CEO Ken Lin said in an interview with Fortune. “Banks spends billions maximizing their own portfolios, but no one spends time telling consumers when interest rates are changing — and they should change the terms of their loans — or if their credit score went down, and how this will affect them.

Lin believes the current process for applying loans is broken. It can take up to 30 minutes to apply for an auto loan, he said, but with Credit Karma, users can complete the application in a matter of minutes with just a few clicks. The reason Credit Karma can streamline the process is the massive amounts of data it has from customers uploading their credit and financial information to the site. That information also lets it give users a more personalized experience. And because the company has also been working with banks for the past six years, Credit Karma understands what lenders require to issue loans.

The company makes money when a customer successfully gets a loan or credit card from a financial institution. The company declined to reveal revenue numbers.

“We hope you will never have to leave Credit Karma to complete a loan,” Lin said.

Lin explained that the new funding is a signal to partners, which include large banks, that Credit Karma has staying-power. Previously, it raised funding last year.

The company plans to use the new war chest to expand to new verticals like student loans, mortgages and auto insurance, as well as possible acquisitions. Credit Karma also plans to continue to expand services for mobile users, added Chief Product Officer Nikhyl Singhal, who joined the company from Google a few months ago.

Competitors include fellow venture-backed technology companies NerdWallet, and Credit Sesame.

Investors in Credit Karmas latest series D round were Tiger Global, and hedge funds Valinor Management and Viking Global. This brings the company’s total funding to $370 million. Previous investors include Google Capital, and Susquehanna Growth Equity.